Taiwan stocks ended 0.25 percent higher on Wednesday, trimming earlier gains, as defensive plays such as glass and ceramics and construction counters among the biggest losers. AU Optronics reversed course to end 0.7 percent lower.
A Japanese newspaper reported the Taiwanese LCD maker is in talks with Sony Corp on jointly producing next-generation OLED televisions.
The main TAIEX index rose 19.13 points to 7,605.00, after opening up 1.19 percent. Electronics shares climbed 0.2 percent. Hon Hai and HTC Corp however were down 1.82 percent and 1.03 percent respectively.
Banking shares were flat.
The Taiwan dollar was up by T$0.042 to trade at T$29.500.
Foreign investors were net sellers on Tuesday, bringing their total selling to T$40.01 billion this month.